As earnings season approaches, how are others adjusting their swing trading strategies? I tend to reduce position sizes and widen stops around earnings dates for names I'm holding, and focus more on post-earnings catalysts for new entries. Does anyone fade earnings reactions or prefer to play the run-up?
Interesting approach. Do you find that widening stops truly protects you enough around earnings, or are you still getting stopped out more frequently? I've considered doing the same but worry about giving back too much.
I'm with you on reducing position sizes. Earnings are just too much of a coin flip for swing trading, even with all the research. I'd rather wait for the dust to settle.
Fading earnings reactions can be profitable, but it requires a lot of conviction and quick execution. I've found it's less about the earnings itself and more about the market's overreaction to the news.
I actually like to play the run-up, but with very tight stops. It's high risk, high reward, and I usually only do it on a small percentage of my capital. Once earnings hit, I'm out regardless.